In a landmark decision, tZero has been granted special-purpose broker-dealer (SPBD) status by both the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This designation marks tZero as only the second company in the United States to receive such approval, following Prometheum’s earlier recognition.
With this new status, tZero is now authorized to handle the custody, clearance, and settlement of digital asset securities, eliminating the need for third-party custodians. This capability positions tZero as a comprehensive service provider for digital securities, streamlining the process of issuance and secondary trading. The company plans to roll out its full suite of services, starting with the digitization of its Series-A preferred equity security (TZROP), in early 2025.
tZero’s latest achievement reflects its ongoing commitment to treating digital assets as securities under existing legal frameworks. Despite some controversy and debate within the crypto community over this classification, tZero’s new role aims to demonstrate how regulatory clarity can drive innovation and real-world applications in the digital asset space.
David Goone, CEO of tZero, expressed excitement about the approval, viewing it as a significant step forward in integrating blockchain technology with capital markets. Alan Konevsky, Executive Vice President of tZero, emphasized the company’s dedication to advancing regulatory innovation and showcasing the potential of digital assets within a regulated environment.
As tZero prepares to launch its new services, the company is set to play a crucial role in the evolving landscape of digital securities, offering a secure and regulated platform for trading and custody. This development signals a promising shift towards integrating digital assets with traditional financial systems in a compliant manner.
